Copyright 2023, Faulkner Information Services. All
Publication Date: 2301
Report Type: VENDOR
Headquartered in Germany, SAP is a market leader in enterprise
application software, serving more than 400,000 customers in 180
countries. SAP’s customer base includes large global enterprises, counting
99 percent of the world’s 100 largest companies as clients. Increasingly,
small- to medium-size enterprises are also turning to SAP, making up as
much as 80 percent of the firm’s base. This report profiles SAP,
discussing its product lines and recent activity.
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Name: SAP SE – Walldorf
69190 Walldorf Germany
Tel: +49 (0) 6227 / 7-47474
Fax: +49 (0) 6227 / 7-57575
SAP America, Inc.
3999 West Chester Pike
Newtown Square, PA 19073
Tel: (610) 661-1000
Type of Vendor: E-Business Software, Cloud Computing, and
Service Areas: Global
Stock Symbol: SAP (NYSE)
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Headquartered in Germany, SAP is a market leader in enterprise
application software with 110,000 employees worldwide (as of January
2023). The company was originally named System Analysis and Program
Development (Systemanalyse Programmentwicklung, in German), later
abbreviated to SAP.
The company serves more than 400,000 customers in 180 countries. SAP’s
customer base includes large global enterprises and, increasingly, small
to midsize firms. In fact, 80 percent of SAP’s customers are
small-to-medium-sized enterprises (SMEs).
The company has most recently been focusing on its cloud computing
offerings. It has reported that its cloud user base consists of more than
245 million subscribers, and that it has more than thirty offerings for
all lines of businessess and industries. It operates 69 data centers in 36
locations and in 17 countries. The company’s end users can buy, use, and
renew SAP and partner offerings online, and it has secured more than
218,000 orders from more than 173 countries.
History & Milestone Events
- 1972 – SAP was founded by a group of five former
- 1988 – SAP goes public.
- 1995 – The company’s growth continued at the same
rate as in 1994 (when SAP reported a 157 percent increase in overall
sales). SAP America hired hundreds of new employees to keep up with the
unit’s growth. In fact, SAP America reported higher sales revenues in
1995 than did SAP’s home office in Germany. SAP’s Asian offices also
reported strong growth. Together, the American and Asian operations
accounted for 70 percent of the company’s group sales, surpassing the
home office for the first time in SAP history and confirming SAP’s
standing as an international firm.
- 2000 – SAP established the SAP Global Solution
Center at its Americas’ headquarters outside of Philadelphia. Headed by
Richard Stewart, who reports to SAP co-chairman and CEO Henning
Kagermann, the center provides areas for customer development projects
to create offerings that meet the unique product life-cycle needs of
individual businesses; strategic development projects to build universal
and industry offerings with global applications; and e-business
offerings for diverse customer, industry, and market applications. The
campus also features a demonstration and briefing center as well as 80
developers and up to 200 visiting experts onsite.
- 2001 – SAP launched SAP Systems Yazilim Uretim vs
Ticaret A.S., a subsidiary headquartered in Istanbul, to market the
mySAP e-business platform to Turkey’s expanding IT market. In addition,
SAP launched SAP Portals, a new company aimed at developing and
marketing open-enterprise portal and business intelligence products. In
other developments, SAP realigned its almost 6,000 member global
development force, establishing six General Business Units (GBUs)
responsible for the management of applications development activities;
seven Industry Business Sectors responsible for the development of mySAP
industry offerings; and three additional GBUs responsible for particular
technologies. The company cleaved its business software division into
three units: new development, maintenance, and product enhancement. SAP
also shifted strategies to pursue partnerships with other vendors,
earmarking $1 billion to team with such firms in order to fill product
- 2002 – The company reabsorbed two of its
subsidiaries, integrating the offerings of SAP Portals and SAP Markets
into the mySAP product family.
- 2003 – Hasso Plattner stepped down. The move left
Kagermann in control of SAP’s chairman and CEO positions.
- 2004 – SAP acquired A2i.
- 2005 – Acquired reporting solutions companies
iLytix Systems, Triversity, Lighthammer, and software company
TomorrowNow; lost out on a bid to acquire retail software company
Retek. SAP also proposed an action to introduce a four-for-one
- 2006 – SAP merged its SAP North America unit and
its SAP Latin America business into a single organization called SAP
Americas. SAP also launched a hosted version of its CRM product.
- 2007 – SAP, through its TomorrowNow subsidiary,
was sued by Oracle for allegedly accessing and downloading thousands of
pages of copyrighted material from an Oracle Web site designed to
support PeopleSoft, JD Edwards, and Siebel Systems application clients.
SAP also extended the term of company CEO Henning Kagermann through May
2009. Purchased Pilot Software, OutlookSoft, MaXware, Wicom
Communications, and YASU Technologies.
- 2008 – SAP made a major acquisition with its buy of
business intelligence software company Business Objects for $4.8 billion
- 2009 – Initiated personnel cutbacks and cost-saving
measures in response to the economic downturn.
- 2010 – SAP’s American subsidiary purchased competitor
Sybase for $5.8 billion USD.
- 2011 – Announced plans to expand operations in China,
Russia, Brazil, and India.
- 2012 – Acquired Ariba with the goal of offering a
comprehensive cloud procurement service, letting customers connect to
the Ariba network through pre-built integration points.
- 2013 – Moved the SAP Business Suite to SAP HANA and
acquired Hybris, a commerce technology vendor.
- 2014 – Changed its legal form from an “AG” company to
a European company, Societas Europaea, SE.
- 2015 – Released the SAP HANA Cloud Platform for the
Internet of Things (IoT).
- 2016 – Teamed with Apple to combine iPhone and iPad
apps with SAP HANA technology and produce an iOS software development
kit and training academy.
- 2017 -Signed an agreement with the United Nations
Industrial Development Organization (UNIDO) to advance the 2030 Agenda
for Sustainable Development with the creation of SAP Digital Boardroom
to manage and report on sustainable development goals.
- 2018 – Partnered with Accenture, Capgemini, and
Deloitte to increase customer adoption of SAP S/4HANA Cloud in the
process manufacturing, discrete manufacturing and service industries.
- 2019 – In October, Bill McDermott decided to not
renew his contract with SAP and step down as CEO. He will leave at the
end of the year after a short transition period. Jennifer Morgan and
Christian Klein will take over as co-Chief Executive Officers.
- 2020 – Acquired Austrian cloud marketing company
Emarsys for an undisclosed amount of money. Citing a need to streamline
decision making during the COVID-19 pandemic, Jennifer Morgan stepped
down as co-CEO, with Christian Klein remaining as sole chief executive.
- 2021 – Agrees to pay more than $8 million in
penalties to the US government for violating export controls and
economic sanctions related to the company’s transactions with Iran.
- 2022 – Revenue from cloud operations becomes the
company’s largest income generator for the first time.
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For years, SAP has been a market leader in enterprise application
software as well as enterprise resource planning (ERP), supply chain
management, data management, and data integration and quality. The
company’s vision – to “help the world run better and improve people’s
lives” – is based on a belief that technology and digitization can help
solve not just business problems but economic, social, and environmental
In 2020, SAP introduced its REINVENT strategy. The underlying vision of
this strategy was extended in 2021 to “REINVENT how the world runs as a
network of intelligent, sustainable enterprises.”1 In pursuit
of this vision, the company focuses on three areas: Helping customers
become intelligent and sustainable enterprises; creating a network of
intelligent, sustainable enterprises; and enabling a sustainable world.
SAP’s Intelligent Enterprise strategy emphasizes key principles to drive
innovation, integration, agility, and speed. The components of the
Intelligent Enterprise are:
- Business Network – Bringing together cross-company
business processes and build on digital supply chain, procurement,
logistics, asset management, travel and expense, contingent workforce,
and platform solutions.
- Business Process Intelligence – Enabling companies to
quickly understand, improve, transform, and manage their business
processes at scale.
- Experience Management – Connecting user, customer,
brand, and employee sentiment by applying experience data to every
decision and action.
- Intelligent Suite – Managing business-critical
elements of the organization including employees, customers, products,
finance, and IT through agile, integrated end-to-end business processes.
- Industry Cloud – Allowing customers to discover and
deploy vertical solutions from SAP and its customers through industry
best practices and evolving current business practices.
- Sustainability Management – Minimizing carbon
footprints, reducing waste through responsible supply chain management,
and enabling diversity across all business practices.
- Business Technology Platform – Described as a
foundation layer, providing data management and analytics allowing
customers to use embedded intelligent technologies such as AI, robotic
process automation, machine learning, and the Internet of Things.
SAP pursues a balanced cloud approach by transitioning its existing base
of customers to state-of-the-art cloud delivery on an SAP converged cloud
running in SAP data centers or on hyperscalers. To that end, in January
2021, SAP introduced “RISE with SAP,” supporting customers in becoming
“intelligent enterprises.” RISE with SAP provides a path to the cloud for
customers without high upfront costs and with faster time to value and the
flexibility to decide which capabilities to use when.
SAP is a market share leader in enterprise resource planning (ERP),
analytics, supply chain management, human capital management, master data
management, and data integration as well as in experience management.
SAP has a wide diversity of customers, ranging from large, multinational
corporations to small-to-medium-sized enterprises (SMEs). 99 percent of
100 largest companies in the world are SAP customers, and 85 of the 100
largest companies use the SAP S/4HANA enterprise resource planning
The SAP Business ByDesign solution, on the other hand, is designed to
open up a new segment of the global market: smaller businesses with
between 100 and 500 employees. These businesses have unique software
needs. For example, getting their IT solutions running quickly, at minimum
risk and predictable cost, is often more important than in-depth
functionality. Indicative of SAP’s across-the-board success, 80 percent of
the company’s customers are SMEs.
The company’s leading position has enabled them to rapidly scale new
products, allowing them to provide extensive options to its customers.
This is key as SAP caters to numerous customers segments in industries
ranging from financial services, agribusiness, retail, and media to
aerospace and defense, telecommunications, healthcare, engineering and
construction, and government services.
Despite the company’s size and product track record, SAP continues to
face formidable competition in the software sector, especially from Oracle
and Microsoft. SAP struggles to deal with declining market share as well
as declining per unit revenue as the software and programming industry
overall grows faster than the company. In such a scenario, SAP has to
carefully analyze the various trends within the technology sector to drive
Although the industry is still dominated by the big names, much of the
growth in the industry is being fueled by local players. This can pose an
issue, especially in emerging regions and from new companies based in
countries that do not strongly protect the intellectual property rights of
foreign firms. SAP’s business can be impacted by the continued emergence
of China, the ongoing fallout from Brexit on the UK and the European
Union, and the overall instability in the Middle East.
Product Strategy. Going forward, SAP will continue
to expand its offerings in its major market categories: application
development and integration, analytics, database and data management,
cloud. Central to that initiative will be the SAP High-Performance
Analytic Appliance (HANA) platform which allows customers to take
advantage of in-memory computing technology.
Overall Perspective. SAP’s future is positive,
- The head-to-head battle between SAP and Oracle may diminish in
intensity. Oracle is transforming itself from a software vendor
into a software/hardware/services firm in the mold of IBM or HP.
- SAP continues to expand into the underexploited small business
- SAP maintains its commitment to open platforms and partner-enabled
innovation like SAP HANA.
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SAP offers leading solutions across a number of technologies, including
supply chain management, enterprise resource planning, business
intelligence, and customer relationship management. SAP’s major
product offerings are detailed in Table 1 below.
|ERP and Finance||
|CRM and Customer Experience||
|Network and Spend Management||
|Supply Chain Management||
|HR and People Engagement||
|Business Technology Platform||
- IBM: https://www.ibm.com/
- Microsoft: https://www.microsoft.com/
- Oracle: https://www.oracle.com/
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Mergers, Acquisitions, and Divestitures
Global investment firm Francisco Partners who specializes in partnering
with technology businesses, announced the completion of the acquisition of
Litmos from SAP. Litmos is an online
training platform that makes the management and delivery of Web and mobile
training courses easy for employee training, customer training, partner
training, and more. The company is one of the fastest growing learning
technology providers in the world, supporting more than 30 million people
in 150 countries across 35 languages. In connection with the re-launch of
Litmos as an independent company, Mike Scarbrough will be joining the
Litmos as CEO.
SAP SE and Francisco Partners (FP)
announced the signing of a definitive agreement under which Francisco
Partners will acquire SAP Litmos from SAP. Litmos is an established leader
in the learning management system market, while FP is a leading global
investment firm that specializes in partnering with technology businesses.
The transaction is expected to close in the fourth quarter of 2022 and is
subject to customary regulatory clearances. Financial terms of the
transaction were not disclosed. The companies’ statement says that the
current Litmos leadership team will continue in similar roles in the new
stand-alone company, serving existing customers such as corporations, OEMs
and technology partners.
SAP SE has acquired Askdata, a startup
focused on search-driven analytics. Askdata applies cutting-edge
artificial intelligence technology to natural language processing, which
gives users the ability to answer any data question with a simple search.
Users can interact with data in a simpler way, without having to learn a
self-service analytics product, enabling them to extract maximum value
from data quickly. With the acquisition, SAP strengthens its ability to
help organizations take better-informed decisions by leveraging AI-driven
natural language searches. Askdata’s IP will become part of SAP Business
Technology Platform and contribute to a next-generation lightweight
analytics experience for SAP Analytics Cloud solution customers and to
line-of-business applications. SAP and Askdata have agreed not to disclose
the purchase price or other financial details of the transaction.
SAP SE has completed the acquisition
of a majority stake of Taulia, a leading provider of working capital
management solutions. “With Taulia now an official part of our solution
portfolio, we can help companies gain financial flexibility and stability
and contribute to making supply chains more resilient,” said Luka Mucic,
CFO of SAP. The acquisition further expands SAP’s business network and
strengthens SAP’s solutions for the CFO office. Taulia’s solutions will be
tightly integrated into SAP software as well as continue to be available
standalone. Taulia will operate as an independent company with its own
brand within the SAP Group. J.P. Morgan will continue to maintain its
equity stake in the fintech.
SAP SE announced its intent to acquire
a majority stake of Taulia, a leading provider of working capital
management solutions. Taulia offers early payment through supply chain
finance, dynamic discounting and accounts receivable finance. The move is
aimed at giving companies better access to liquidity and improving their
cash flows. The company has also built a strong ecosystem of financial
partners who provide the necessary funding, including J.P. Morgan,
UniCredit and other high-profile banks. The acquisition further expands
SAP’s Business Network and strengthens the firm’s solutions for the CFO
office. Taulia will operate as an independent company with its own brand
in the SAP Group. Cédric Bru will remain CEO of Taulia while SAP CFO Luka
Mucic will become chairman of the board.
SAP SE has finalized its agreement to
acquire Berlin-based Signavio GmbH, a leader in the enterprise business
process intelligence and process management space. Signavio’s integrated
cloud-native process management suite complements existing business
process intelligence software from SAP, and combining Signavio with the
Business Process Intelligence unit of SAP will strengthen SAP’s capacity
to help companies quickly understand, improve, transform, and manage their
business processes at scale. The suite will also allow customers to
monitor the long-run success of these process changes. SAP and Signavio
agreed not to disclose the purchase price or other financial details of
SAP SE has acquired intellectual
property of SwoopTalent, a leader in talent data intelligence, in an asset
acquisition. Founded in 2012, SwoopTalent developed an AI-powered platform
that combines, analyzes, and trains data from disparate HR systems and
workflows. Embedding SwoopTalent’s data and machine learning technology
across SAP SuccessFactors solutions will further SAP’s vision of human
experience management (HXM), which prioritizes individualized employee
experiences and dynamic opportunities that boost engagement, improve
organizational agility and ultimately fuel business transformation. SAP
plans to use SwoopTalent’s technology to strengthen its AI capabilities
and provide customers with a holistic and continuously updated view of
their people — from skills and capabilities to interests and learning
preferences — so they can match employees to internal jobs, projects,
learning courses, mentors and more. Several SwoopTalent engineering
employees will also join the SAP SuccessFactors team.
Products and Services
SAP SE announced the launch of SAP
Build, a low-code solution that puts SAP’s world-class enterprise
technology into the hands of business users, giving them direct, secure
access to the end-to-end processes, data, and context they need to make
smarter decisions and drive innovation quickly. The offering empowers
business users with minimal technical expertise to create and augment
enterprise applications, automate processes and design business sites with
drag-and-drop simplicity. More than 275,000 process reference points from
4,000 customers and 1,300 use-case specific workflows and automations let
users instantly tap into the full spectrum of business expertise built
into SAP technology. SAP Build also works with non-SAP software systems,
and the new SAP Builders program helps users ramp up quickly and connect
with their peers through hands-on sessions and forums for sharing best
SAP SE has added new advancements to
the foundation of the SAP SuccessFactors Human Experience Management (HXM)
Suite, enabling organizations to execute an integrated talent development
strategy and create a future-ready workforce. The latest advancements
bring together data, machine learning, and artificial intelligence to
provide a better understanding of the capabilities within the workforce
and actionable talent intelligence to align people with the needs of an
organization. Amon the features are “skills ontology,” which uses machine
learning and automation to continuously identify an employee’s skills
based on their role, responsibilities, experiences, and accomplishments to
providing a holistic view of an organization’s skills on a global scale;
and “dynamic teams,” a new capability that enables organizations to
create, track, measure, and optimize the outcomes of teams that exist
beyond traditional hierarchies. Organizations that use the SAP
SuccessFactors Performance & Goals solution can add objective key
results (OKRs) to dynamic teams to track progress and measure success.
Microsoft has chosen to adopt the RISE with SAP solution on Microsoft
Cloud, shifting the company’s SAP ERP software systems to SAP S/4HANA
Cloud, private edition. RISE with SAP will allow Microsoft to deploy new
capabilities and technologies faster and run its business on a flexible
cloud-first solution that is integrated with the other cloud solutions
from SAP that Microsoft uses. SAP and
Microsoft have a long-standing partnership of co-innovation and
engineering, which forms the basis for the mutual support of both
companies’ products. Microsoft is the first public cloud provider to adopt
RISE with SAP internally to transform some of its large SAP ERP
SAP expanded its embedded artificial
intelligence (AI) capabilities that make it easier for developers and
customers to harness AI and boost productivity. New features in the SAP
Conversational AI service simplify building and monitoring chatbots to
automate tasks and workflows. SAP is also expected to launch Personalized
Recommendation service, a novel neural network-based recommendation engine
that delivers highly personalized recommendations across a wide range of
business scenarios. In addition, many SAP products and services now use
the power of AI to, for example, automate intercompany document matching,
recommend actions in workflows, extract and process data from business
documents, or provide learning recommendations.
SAP is releasing a smart app designed
to track, trace, and authenticate prescription medicines in the United
States. Developed in partnership with pharmaceutical research firm
Boehringer Ingelheim, the smart app will enable law enforcement officials
to potentially detect illicit, counterfeit, or unapproved Boehringer
Ingelheim medicines being smuggled into the United States or sold
illegally. The app allows US law enforcement officials to scan the 2D
barcode on Boehringer Ingelheim-manufactured life-enhancing medications
and authenticate them before the medicines reach patients. This technology
builds on SAP’s previous efforts to eliminate counterfeit products with
SAP Information Collaboration Hub for Life Sciences, a
blockchain-technology tool that allows users to authenticate
pharmaceutical packaging as it moves between manufacturers, wholesalers,
and hospitals and pharmacies.
SAP has launched SAP Responsible
Design and Production, a solution for designing products sustainably and
transitioning to a circular economy. “The circular economy is based on
three principles, driven by design — eliminate waste and pollution,
circulate products and materials, and regenerate nature,” said Andrew
Morlet, CEO, Ellen MacArthur Foundation. With SAP’s new solution,
businesses can embed circularity principles into core business processes,
helping eliminate waste and unlock new value by designing products to be
sustainable from inception. SAP Responsible Design and Production is a
cloud-native solution co-developed with Accenture on SAP Business
Technology Platform. It provides tailored intelligence that enables
businesses to keep pace with EPR regulations and plastic taxes, embed
circularity principles into core business processes, and optimize design
for sustainable business.
Alliances and Joint Ventures
PwC and SAP SE are undertaking a new
co-innovation strategy to make sustainability an integral part of standard
business operations. The strategy is directed at creating trusted
solutions to address key environmental, social, and corporate governance
(ESG) business challenges, covering such issues as carbon measuring,
reporting, and steering as well as supply chain decarbonization, climate
risk, and competitive analysis. Using PwC’s deep ESG and accounting
expertise, the strategy enables businesses to apply trustworthy,
auditable, and verifiable ESG metrics through their operations while
leveraging the SAP Cloud for Sustainable Enterprises solution along with
the SAP Sustainability Control Tower solution and the SAP Product
Footprint Management solution. PwC and SAP’s strategy includes solutions
encompassing an enterprise-wide ESG strategy ranging from trading
optimization and tax credit recognition to third-party risk management and
Phillips 66 Company has chosen SAP to
enable its digital transformation. Goals include maximizing profitable
decision-making, mitigating commodity risk, managing capital, and
increasing visibility at a granular level along the hydrocarbon value
chain. The project includes new digital processes encompassing hydrocarbon
value chain optimization with updated business operating models, capital
project execution, business-driven analytics, integrated logistics,
digital operations and maintenance, and application rationalization. The
new system will impact most of Phillips 66’s 13,000 employees across its
North American and international locations.
Google Cloud and SAP SE are unveiling
new integrations between Google Workspace and SAP’s flagship cloud ERP,
SAP S/4HANA Cloud. The initial set of features will be included as
standard functionality in SAP S/4HANA Cloud and are being built on the SAP
Business Technology Platform, enabling tight integration and a consistent
user experience across SAP software supporting business processes end to
end. Customers will be able to connect core SAP software designed for
running all mission-critical processes in the cloud with the collaborative
capabilities of Google Docs and Google Sheets. First scenarios are planned
in finance and in many additional solution areas, where data exports and
collaborative document management create a more seamless user experience,
with more to follow.
Accenture and SAP SE are introducing
a new joint offering to help large enterprises move to the cloud and
deliver continuous innovation. The collaboration combines the RISE with
SAP solution and SOAR with Accenture services offering and has been
augmented with new features that encompass Accenture’s comprehensive suite
of transformation services, including customized cloud services and
proprietary intelligent tools, delivered through a cohesive as-a-service
model. The blueprint draws on Accenture’s experience as one of the first
large enterprises to run its core financial operations on a single, global
instance of SAP S/4HANA. Accenture will deploy the RISE with SAP solution,
powered by Accenture’s cloud services and tailored for the specific
requirements of its global IT organization, with the goal of helping
organizations achieve greater agility, innovation, and value.
IBM announced it is teaming with SAP
to provide technology and consulting expertise to make it easier for
clients to embrace a hybrid cloud approach and move mission-critical
workloads from SAP solutions to the cloud for regulated and non-regulated
industries. This premium supplier option with IBM for RISE with SAP gives
clients the tools to help accelerate the migration of their on-premise SAP
software workloads to IBM Cloud, with the support of industry-leading
security capabilities. In addition, IBM is also unveiling a new program,
BREAKTHROUGH with IBM for RISE with SAP, a portfolio of solutions and
consulting services that help accelerate and amplify the migration to SAP
SAP SE and Icertis today announced an
expanded partnership for enhanced contract management to help companies
increase efficiency, minimize risk, and realize the full intent of their
agreements. The partnership, which includes a financial investment from
SAP in Icertis, will lead to a joint product road map and deeper
technological integration to deliver enterprise-wide value, including
faster negotiations, greater compliance, and AI-powered business insights
and automation. As part of the deal, Icertis Contract Intelligence (ICI)
for SAP Ariba solutions and ICI for SAP Customer Experience solutions are
now SAP Endorsed Apps, premium certified by SAP with added security,
in-depth testing, and measurements against cloud operations best
SAP SE announced the global launch of
SAP Fioneer, a joint venture for the financial services industry (FSI)
between SAP and Dediq GmbH. Dediq is an entrepreneurial investor focused
on information technology and digital businesses while SAP counts more
than 800 of the world’s top 1,000 banks and insurance companies among its
customers. SAP Fioneer expands the financial service software offered by
SAP and will work to accelerate innovation in the areas of core banking,
core insurance, and FSI-specific finance solutions. The new operation is
also mandated to extend the SAP for Banking and SAP for Insurance solution
portfolios to cover banking and insurance processes holistically.
SAP SE has been tapped by Revlon Inc.
to employ its RISE with SAP offering to expedite the beauty giant’s
strategic cloud migration. Revlon, which saw e-commerce net sales soar
approximately 40 percent in 2020, remains focused on enhancing its
end-to-end digital capabilities and support continued acceleration in this
channel. By utilizing RISE with SAP on an AWS infrastructure, Revlon
expects to bolster its digital infrastructure to help e-commerce
operations become more nimble and innovative. Revlon also plans to use the
SAP Analytics Cloud solution to incorporate predictive analytics across
its business processes.
Google Cloud and SAP SE have begun an
expanded strategic partnership to help customers execute business
transformations, migrate critical business systems to the cloud, and
augment existing business systems with Google Cloud capabilities in
artificial intelligence (AI) and machine learning (ML). Under this
agreement, Google Cloud will be a strategic cloud partner for the RISE
with SAP offering. The two companies will partner to accelerate customers’
cloud migrations and business process migrations. In addition, customers
can benefit from the planned global availability of multiple SAP services
and products on Google Cloud’s infrastructure and high-speed network.
These offerings include the SAP Analytics Cloud and SAP Data Warehouse
Cloud solutions within SAP Business Technology Platform (SAP BTP).
SAP SE has joined the Open
Manufacturing Platform (OMP) initiative. The OMP brings together business
leaders and technologists from manufacturing companies,
technology-solution providers, and systems integrators to drive innovation
across the manufacturing community and value chain. With this
collaboration, SAP seeks to help drive innovation along the digital supply
chain using open standards and open source. This collaboration will allow
for the design of agile manufacturing processes, specification of cloud
architecture, and development of tools for the future guided by the
principles of sustainability, smart energy, and green supply chain
management. SAP will actively participate in all working groups, including
Manufacturing Reference Architecture, IoT Connectivity, Semantic Data
Structuring, and ATS Core Services.
Personnel and Organizational
SAP SE announced that Dominik Asam has
been appointed as chief financial officer and member of the executive
board. Asam will take over from Luka Mucic who is stepping down after 26
years with the firm. Asam comes to SAP from his current role as CFO and
member of the executive committee at Airbus. He previously held positions
with Goldman Sachs and Siemens.
Lloyd Adams has been appointed to oversee strategy, operations, people,
sales, services, and profitability across the United States and Canada for
SAP SE. The region covers all lines of
business, including cloud and on-premise software as well as service and
support to hundreds of customers, from small businesses to large
corporations across a multitude of industries. Previously, Adams served as
managing director of the East region of the United States and was
responsible for the strategic direction, customer success, profitability,
and overall leadership of one of SAP North America’s key market units.
Adams succeeds DJ Paoni, who held the position of president of SAP North
America for five years, substantially growing the business, the customer
roster and the sales team. After 26 years with SAP, Paoni has made the
decision to retire.
Following Russia’s invasion of Ukraine, SAP
SE said it has begun “an orderly exit from our operations in Russia”
including shutting down all cloud operations in the country. For
non-sanctioned companies in Russia, SAP has offered the choice to have
their data deleted, sent to them, or migrated to a data center outside of
Russia. For those Russian companies who choose the migration path, SAP
says it will not renew their contract upon expiration of the current
subscription term. SAP also intends to exit the support and maintenance of
its on-premise products in Russia. The company says it is evaluating
multiple options to execute this decision, and pledges “to honor our
obligations to non-sanctioned customers.” It also notes that existing
customers in Russia using on-premise software will still be able to use
Luka Mucic, chief financial officer and executive board member of SAP
SE, will leave the company on March 31, 2023. Mucic is the third CFO
in the company’s 50-year history, taking the position in 2014. Mucic
started his career at SAP in 1996 as a member of the corporate legal
department. After serving as CFO of SAP’s DACH region from 2008 to 2012,
he became head of Global Finance and a member of SAP’s Global Managing
Board in 2013. Mucic also oversees SAP’s sustainability efforts and is
responsible for the Taulia and SAP Signavio business units. The
Supervisory Board has initiated the search for a successor.
SAP SE announced that Alex Klaeger has
been appointed president of the Middle and Eastern Europe (MEE) region as
of February 1. In his role, Klaeger is responsible for all sales in the
MEE region, comprising the market units of Germany; Switzerland; Central
and Eastern Europe (CEE), including Austria; and the Commonwealth of
Independent States (CIS). He succeeds Hartmut Thomsen, who is pursuing an
opportunity outside SAP.
SAP SE has appointed Ritu Bhargava to
become chief product officer for SAP Customer Experience. Bhargava joins
SAP from Salesforce, where she held various technology leadership
positions over the past ten years, most recently heading Salesforce Sales
Cloud engineering as a senior vice president. The move comes after Bob
Stutz, recognized as one of the world’s leading experts on customer
experience and named by Ad Age as one of the Top 25 Marketing Technology
Trailblazers, announced his retirement after a career of more than 25
years in the tech industry.
Supriya Jha has been appointed chief diversity and inclusion officer at SAP SE, effective November 1, 2021. Most
recently, Jha served as the global head of Diversity, Inclusion and
Belonging at Nasdaq, and previously held roles at Mercer, Bank of America,
Merrill Lynch, and Credit Suisse. She holds a master’s degree in
organizational psychology from Columbia University and a postgraduate
degree in communications from Mudra Institute of Communications,
Ahmedabad, India. In her new role, Jha will be based in New York.
As cloud momentum continues to accelerate, SAP
SE announced that its third quarter total revenue for 2022 jumped 15
percent year-over-year to 7.84 billion euro. The comparable 2021 quarter
saw total revenue reach 6.845 euro. Cloud revenue alone in the quarter
increased by 38 percent, accounting for 3.288 billion euro. For the full
year, the company says it expects a total revenue impact of approximately
250 million euro due to the lack of new business and discontinuation of
existing business in Russia and Belarus due to the invasion of Ukraine and
the resulting decision to wind down operations in those two aggressor
SAP SE announced its financial results
for the second quarter and half-year ended June 30, 2022. Cloud revenue
was up 34 percent to become the company’s largest revenue stream. For the
quarter, cloud operations brought in 3.056 billion euro compared to 2.276
billion euro in the same quarter of 2021. Total revenue for the company
reached 7.517 billion euro, a 13 percent increase from the year-ago
period. “Our transition to the cloud is ahead of schedule and we have
exceeded topline expectations,” said Christian Klein, CEO of SAP.
SAP SE saw revenue hit 7.1 billion
euro in the first quarter, up 11 percent on 6.3 billion euro a year
earlier. Meanwhile, operating profit climbed ten percent to 1.1 billion
euro. Cloud revenue growth was up 31 percent while revenue for SAP S/4HANA
cloud, the business application platform onto which it hopes to move
thousands of on-premises customers, saw revenue increase 78 percent
compared with the year-before quarter. However, SAP’s performance has been
hit by its decision to withdraw business in Russia following the invasion
of Ukraine with the company saying it expected to see a 130 million euro
reduction resulting from its decision to withdraw cloud services and
on-premise software support from Russian customers.
SAP SE announced its fourth quarter
and full year 2021 results, with growing strength in its cloud operations
as more businesses digitize their operations. For the quarter, SAP’s cloud
revenue was up 28 percent to 2.61 billion euro, with the SAP S/4HANA cloud
business application revenue showing a 65 percent increase over the 2020
fourth quarter to 329 million euro. SaaS/PaaS cloud revenue outside the
Intelligent Spend business was up 38 percent, although software licenses
revenue was down 14 percent year-over-year to 1.46 billion euro. Total
revenue for the company was up six percent year-over-year to 7.98 billion
euro. For the full year, cloud revenue was up 17 percent to 9.42 billion
euro, hitting the high end of the revised full year outlook of 9.4 to 9.6
billion. SAP S/4HANA cloud revenue was up 46 percent to 1.09 billion euro,
exceeding the one billion euro cloud revenue mark as anticipated. Services
revenue was down eight percent year-over-year to 3.76 billion euro,
primarily attributable to the 2020 divestiture of SAP Digital
Interconnect. Total revenue was up two percent year-over-year to 27.84
1 “2021 SAP Integrated Report.” SAP, p. 53.
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